CEO Turnover Is Accelerating
CEO succession is accelerating and increasingly favours outsiders, as boards respond to a high-change environment rather than only to poor performance.
Summary
Ignatius reports research showing the CEO succession rate at S&P 500 companies rose to 12.5%, above the long-term average. High performers were almost as likely as underperformers to change CEOs, and the share of outside hires jumped from 18% to 33%. The researchers attribute the trend to a high-change landscape. The piece suggests boards are rethinking what leadership their firms need amid rapid change.
Editor's opinion
CEO succession is accelerating and increasingly favours outsiders, as boards respond to a high-change environment rather than only to poor performance.
Key concepts
CEO turnover · Outside successors · High-change landscape